IR35 is the legislation on everyone’s lips and it’s a subject that we have covered a number of times. Since its passing into law in 2000, it’s been a priority for freelancers and contractors to make sure they don’t get caught in the IR35 net.

Some professional organisations now offer independent reviews of your contracts that check for IR35 compliance, giving you the peace of mind from the outset that you are not at risk of being caught out. This week, we’re going to investigate if these contract reviews are really worth it for independent professionals today.

IR35 – the risks

IR35 is aimed at uncovering ‘disguised employment’. This affects people that provide their services through a limited company, known as a personal services company. ‘Disguised employment’ is when a freelancer works on a contract through their limited company, but their working conditions and their contract indicates that they are working in the same way as a traditional employee.

If one of your contracts is caught by IR35 legislation i.e. – your work appears to be more like that of a traditional employee – your income will then become subject to normal income tax and National Insurance contributions and you will lose the advantage of the low salary, high dividends tax arrangement that many freelancers benefit from.

The Assessment

If you are selected by HMRC to undergo an IR35 compliance investigation they will investigate both your contract and your working arrangements. That means that the way you work and the language of the contract you are working under need to be in agreement.

This is where the skills of a professional contract assessor really come to the rescue for a busy freelancer. Employment status experts will investigate the terms of your contract as well as delving into your working practices through the eyes of an HMRC investigator. That means that you have an objective onlooker examining your compliance for IR35 without you having to get bogged down in the finer details of this often very hard to understand legislation.

This way, you can be secure that both the wording of your contract, and the way in which you actually complete the work in the contract, are compliant with IR35, limiting your exposure to the risks of having an unexamined contract.

This, to us, is the biggest advantage of having an employment status professional review your contract and the way in which your services are delivered. It’s sure to give you peace of mind that a professional can help you prove to HMRC that you’ve taken reasonable steps to IR35-proof your contract.

When HMRC investigate the validity of your contract against the stipulations of IR35 legislation they carry out a series of Business Entity Tests. These tests function as one of the ways to prove that your contract is at low, medium or high risk of being caught out by IR35.

Being covered by Professional Indemnity (PI) insurance can improve your IR35 stance and forms part of the Business Entity Test. That means that ensuring that you are fully covered as a freelance contractor is a vital step to cover yourself at every level. At Kingsbridge we have designed our core insurance package to cover the risks you’re exposed to as a freelance contractor. This includes Professional Indemnity, Public Liability and Employers’ Liability cover, all at levels that suit the needs of the modern freelancer.

If you wish to discuss your cover requirements then simply call our friendly, professional team at Kingsbridge on 01242 362160 and we will be happy to discuss your needs with you. Or, you can apply online to get access to cover almost instantly.

If the date itself hasn’t already clued you in, then the proliferation of hearts, chocolates and roses that adorn every shop’s checkout is sure to have reminded you that Valentine’s Day is just around the corner.

If you have a freelancer in your life, or you’re one yourself, you will know that it takes something a little different to get excited about this cheesiest of celebrations. If you want to show your freelancer some love and affection, and get them a gift that appeals to their unique sense of style, then check out our run down of five of the best Valentine’s gifts for the freelancer in your life.

For the Gourmet Freelancer

The Molecular Gastronomy Kit is perfect if your freelancer is a natural born entertainer. Say goodbye to tired, dog-eared copies of traditional recipe books and introduce something a little different to their Friday night dinner. Including a DVD of 50 recipes and gadgets galore to create Heston Blumenthal worthy gastronomic experiments, this is the perfect gift for the creative and the resolutely individual.

Does your freelancer love their smartphone? Always looking at their screen? We don’t blame them – smartphones are taking over the world, with television streaming sites such as Netflix available on your phone. The Smartphone Projector allows everyone to share what’s on screen. A great little DIY project, all you need is some glue and then you’ll be ready to have a movie night courtesy of your smartphone!

If your freelancer is blessed with green fingers but is a little short on outdoor space then this grapevine in a box is the perfect way to indulge their horticultural side while giving their home office a splash of green…plus the promise of future wine is always a welcome gift!

One of the many great benefits of freelancing is not having to worry about office policies on facial hair. If your freelancer prides themselves on their stellar beard then a kit to take tip top care of their facial hair would be perfect!

The perfect blend of mixology and relaxation, if you have an engineer on your hands who loves to find out how things work, the Artisan Gin Makers Kit will allow them to quench their thirst for knowledge while also quenching their actual thirst at the end of the working week.

So there you go! With only a few days to go, hopefully our blog has helped you to find a way to make Valentine’s a little quirkier for the freelancer in your life.

Do you have any fool proof Valentine ideas for your freelance love? Or what do you like to receive on Valentine’s Day? Let us know on Twitter or our brand new Facebook page how your Valentine’s plans are coming along.

Whether you are new to freelancing or you’re a long-term independent professional, it’s fair to say that we all experience our fair share of mistakes. From missing out on a game-changing client to overworking yourself out of a combination of enthusiasm and deadline driven stress, it’s key to take note of these mistakes and stop them in their tracks before they become routine bad habits.

Read our list of five of the most common mistakes a freelancer makes and how to avoid them!

Setting your rates too low

Are you under-pricing yourself in a bid to remain competitive in the market? Worried that a cheaper option will always win the work? This is a common trap that many contractors fall into because many people simply fail to research typical prices in their industry, thinking that setting their prices low will win them business.

It’s always best to consider your billable time alongside any purchases and materials you need to complete a job, your overhead and the profit you require to keep your business running. It does your clients and your business a greater service to charge for the true quality and value of your work and time. Sara Horowitz’s The Freelancer’s Bible has a great chapter on how to make sure you’re setting a fair rate for your work – a great place to start!

Not keeping your taxes organised

We’ve written about this before, but keeping organised ahead of your self-assessment tax deadline is key! Very often, those new to freelancing underestimate the amount of time it takes to properly fill out a tax return, so keeping track of receipts, jobs, outgoings and incomings from the very start is of vital importance. Failure to do this can land you with an automatic fine that will only keep increasing and nobody wants to be faced with that at the start of the year.

Not networking

The word ‘networking’ can strike fear into the shyer amongst us. We get it, sometimes it’s awkward and scary to walk into a room of complete strangers and try to sell yourself and your abilities. However, the simple truth is, networking is the lifeblood of making your freelance business work. Engaging with fellow contractors in the same field will have many benefits for your business; it can result in collaborative projects, potential leads, referrals and access to new resources.

Not learning how to manage time

We understand the desire to work every hour you’re not sleeping in order to make a good impression and race against burgeoning deadlines. However, this is not a healthy way to run a business or live your life. It doesn’t get your best work done and you will eventually burn out.

Head over to our infographic on time management to pick up some tips on how you can be more productive, carve out some time for yourself and work smarter, not harder!

Not investing in insurance

There is a lot to think about when you’re a freelancer; you have to keep many plates spinning all at once. As with keeping organised ahead of your tax return, sometimes details such as investing in comprehensive freelance insurance can easily pass you by. As almost all modern freelance contracts stipulate contractors be covered by their own freelance insurance it’s vital that you don’t forget this step!

With Kingsbridge, one thing you don’t have to worry about is having a fully comprehensive, freelance insurance policy. Our key insurance package includes Public Liability, Professional Indemnity and Employers Liability cover combined into one policy. Designed exclusively for the potential risks of freelance contracting, you can gain access to cover from us almost instantly online.

Call our friendly, professional team at Kingsbridge on 01242 362176 where we will be happy to discuss your requirements. Alternatively, apply for a quote online to gain access to cover instantly.

It’s the last day before the 31st January self-assessment deadline. That means, for many self-employed and freelance individuals, it’s the last lap before submission of your tax return and final payment of any tax that you owe for the previous financial year.

We’d hedge our bets and say that for many of you the 11:45pm scramble on 31st January is a familiar one as you race against time to get your return submitted and avoid the on the spot £100 fine that 12:00 midnight on 1st February brings.

To inspire you and get you through the last stages of the final slog toward self-assessment freedom, we’ve put together a list of some of our favourite things that you can spend a hard earned £100 on, simply by avoiding submitting your tax return late. After the effort that goes into keeping organised for January, you deserve it!

Headphones

If you’re someone that benefits from listening to music to aid concentration or to block out background noise while you’re working, a new pair of earphones is always a good investment, whether for business or pleasure.

Do you have latent artistic ability? Would you like to see your creative vision rendered in 3D? Or maybe you just like really cool gadgets that you get to play with. Either way, the 3D pen is a brilliant way to spend a little pocket money. The 3Doodler is the world’s first 3D printing pen that allows you to draw in 3D by projecting heated plastic that cools into a solid structure.

It’s a fun little gadget and could make for some exciting new additions to your desk space!

The iKettle

Do you ever get so busy that you can’t even find 5 minutes to pop the kettle on for a much needed cup of tea? Well, the struggle ends with the iKettle. The world’s first Wi-Fi kettle, you can control the iKettle with your smart phone. Struggling over an impending deadline, yet parched and in need of a cuppa? The iKettle has got your back. Inspired!

Fitbit

If you’re like a large proportion of people, you’ll have resolved to get fitter for the New Year. The Fitbit is an integrated accelerometer. It keeps track of your activity levels, and lets you log fitness goals, calories burned and the hours you’ve slept. What’s more, it comes in a sleek and stylish wristband design. All you need to get your fitness on track for 2015.

Nike Free Runs

If you want to make sure you have something to enter in to your new Fitbit tracker, then you need to get your running shoes on! Why not invest in a treat for your feet with a new pair of Nike Free Run trainers.

Specially designed to adapt to the foot movement and stride of each individual runner, Nike Free Runs are the ultimate in supportive footwear. So, if you’re in need of clearing your head with a run, these are the shoes to carry you further.

Sometimes we all need a little inspiration to help get us through trying times, and the final push toward the self-assessment deadline is no different. Just remember that you don’t want to be hit with a £100 fine that you could be using to make your life a little easier with some of these handy gadgets.

How would you spend the £100 you get to keep by submitting your self-assessment return on time? Let us know in the comments below or get in touch with us on Twitter.

For the last few years HMRC has revealed its top ‘oddest’ excuses they receive for the submission of late tax returns. The creativity and, let’s face it, boldness, that’s required to approach HMRC with excuses dragged straight from the ‘dog ate my homework’ school of thought is really something to be marveled at.

A classic, ‘dog ate my homework’ turn; it would appear that somebody’s dog has quite the taste for tax returns.

I fell in with the wrong crowd.

This is quite an impressive excuse…if you’re a teenager on the brink of being expelled from secondary school. We’re not sure with regard to self-assessment though.

I’ve been busy looking after a flock of escaped parrots and some fox cubs.

While a pretty admirable pursuit, we’re not quite sure a flock of parrots counts as a reasonable excuse for filing your tax return late!

Our business doesn’t really do anything.

So bold. Almost so bold, in fact, for it to inspire respect. Almost…

I was in Australia.

And yet, you still owe tax in the UK!

But, what is a reasonable excuse?

Tall tales aside, sometimes life events can happen that are far beyond anyone’s control and this, naturally, can affect a freelancer’s ability to successfully complete their self-assessment return. You can appeal certain penalties incurred by late submission of your tax return, as long as you have, what HMRC terms as, a ‘reasonable excuse’.

Reasonable excuses in the eyes of HMRC include:

The death of a partner

An unplanned hospital stay

Computer failure during the process of submitting your tax return

Service disruptions on behalf of HMRC

A fire

Unexpected postal disruptions

In short, a reasonable excuse extends to events that are completely out of your control and that are unexpected. You can find out further details about HMRC’s reasonable excuses here or the tax appeals process here.

Despite the light-heartedness of some of these excuses, it does serve as a good reminder that to file your return sooner rather than later is prudent, as, if you don’t have one of the excuses listed above, you could face financial penalties.

There is an immediate £100 late fine that comes into force at midnight on February 1st. Then if your self-assessment isn’t returned after three months, HMRC will charge daily penalties of £10 per day for a period of up to 90 days. So that’s at least £1,000 in late fees that you’ll face, all for the sake of a hungry dog with a craving for HMRC documents. Doesn’t seem worth it to us.

What are some of the most outrageous excuses you’ve heard for failing to file a tax return? Have you been caught out in a lie? Or do you have any tips or fool proof strategies to avoid having to think of an elaborate excuse in the first place? Let us know in the comments or connect with us via Twitter or our LinkedIn page.

It’s no secret that January can be a testing time for freelancers. We’ve written before about the pressure to stay organised so that the march to 31st January isn’t a time you face with utter dread every year.

It’s fine to say that you need to be organised, but it can be harder actually doing what you need to. We all need a little help sometimes. That’s why we’ve come up with a list of five of our favourite organisational tools that will help you keep track of time, organise your documents and your finances and make January’s deadline less of a burden on your time.

Dropbox is nearly ubiquitous amongst modern freelancers, especially if you’re embracing the digital revolution as it advances into nearly every aspect of our lives. Syncing all of your devices from phone, to tablet, to laptop, Dropbox ensures that all of your digital documents are accessible anywhere. And if there’s something you need to update or edit, your changes will be saved across all platforms too. An absolute must if organisation is one of your business resolutions this year.

We don’t know how you feel about “to-do” lists but we love them. They keep us focused, accountable and gives us a great sense of achievement every time we get to cross something off our list!

To-do lists are great for organising your time. This is especially true if you have to give over some of your precious time to organising your tax details in preparation for the all-important 31st January deadline. Teux Deux offers a really simple interface that allows you organise your list of tasks digitally. What’s more, they have an iPhone app that allows you to take your lists with you on the go. Now there really is no reason to go off track.

If you want to win back some time during the run-up to the self-assessment deadline then Central Desktop could be the perfect way to do it! Now, we all know that the customer (or client) is always right and pleasing them is a top priority for any freelancer. However, sometimes when you’re knee-deep in receipts in your designated self-assessment time a client call, requesting emails or documents, can be the last thing you want to deal with.

With Central Desktop you can create an online collaborative workspace that connects you and your clients. That way, resources such as project plans, agreements and progress reports are stored in the cloud and accessible by you and your clients, removing the need for unnecessary emails and gifting you extra time to focus on the important tasks at hand.

What image comes to mind when you think about the task of collecting all of your receipts together before you submit your self-assessment? We’d bet that for a majority of you it would be the frantic dash to fill an old shoebox with crumpled petrol receipts and the bill for a client dinner or two.

Shoeboxed have taken that concept and updated it for the digital generation. Giving you the ability to scan and upload receipts and business cards, Shoeboxed will turn these into expense reports and contact lists. Helping you to cut down on admin time and admin costs, this is one tracking system that could well be a self-assessment game changer.

FreeAgent is the ultimate accounting tool for the time-starved freelancer. If you’re not so comfortable with accounting (and it’s fair to say that not all of us are) then FreeAgent allows you to organise your expenses and income by project, so keeping track is easy. Another freelance friendly feature is a one-click report that produces a self-assessment summary that you can copy straight to your tax return. If that’s not a time (and stress) saver, we don’t know what is!

As you can see, it’s always worth embracing what the digital world has to offer in terms of productivity and organisational tools. There are hundreds of different apps, web based programmes and software that can help you keep stress at bay and make sure you’re super organised every January!

What are some of your favourite tools to keep you organised ahead of filling out your self-assessment return? Have we missed anything out? Let us know in the comments below, or get in touch with us on Twitter!

We’re pleased to present our latest infographic. We all know how tough it can be to carve out the time for yourself when you’re freelancing, or to find the discipline required to keep your day and your work structured. How do you resist the temptations and distractions that come with working for yourself? Easy. You follow our time management guide.

Clicking on the image above (or the link at the end of this post) will download the infographic, showing you how to break down all the ways in which you can manage your time on a daily basis. From prioritising the most important tasks to utilising the latest digital tools, our guide is designed to help you get the best out of yourself and your day. Take a look by clicking here.

January is well and truly upon us. Most of us have completed our first full week back in work and the challenges of the New Year are facing us.

January holds more significance for freelancers than most, and that’s thanks to the 31st January self-assessment online submission deadline looming large on the horizon. The first month of the year can be stressful for freelance contractors and the self-employed as you rush to collect everything your need to avoid being lumped with a hefty fine if you miss that all important deadline.

If you’re new to the process, or you’re struggling a bit in the organisation department, then read on for some of our top tips to avoid self-assessment stress this month.

Ensure you’re registered

If you’ve just gone freelance then this is an essential step. You only have to register with HMRC once to let them know you need to file a self-assessment. From then you will be reminded by HMRC every year that you need to complete your assessment.

First time registration deadlines are October 5th of the current tax year. Failure to register will incur further fines. However, if you manage to submit your self-assessment in full by the 31st January then you can reduce or even avoid late registration fees.

To successfully register you need to provide your National Insurance number and the details of your company or relevant personal details. When you’ve registered your will receive a Unique Taxpayer Reference number. This is an important piece of information so keep it safe as you will have to use this number on all subsequent self-assessments.

Keep a paper trail

There is nothing worse than the January rush, scrabbling to pull together records and evidence of your finances. It is at this point in the year that it pays to be fastidious and diligent all year round by keeping a water tight record of your incoming and outgoing expenses.

Getting into the practice of collecting business receipts and keeping a log of the relevant business transactions that accompany them is wise. It will prove to be the perfect antidote to the January rush and will make filling out your online self-assessment that little bit easier.

In terms of the type of thing you need to be keeping hold of for your records come this time of year, there really is no limit on what is important and pertinent. One missing statement can cause delays in submitting your self-assessment so it pays to be cautious. You can find a comprehensive guide to keeping documents for tax purposes on HMRC’s website here.

Don’t leave it too late

This would be a good time to note that leaving your self-assessment too late is likely to cause you unnecessary delays and unwanted fines. Of course, the key to avoiding the hurry is in staying organised and planning well.

If you’re not so hot on forward planning then it’s at this point we should probably mention late penalties. If you miss the 31st January deadline then you’ll be presented with an immediate £100 fine. Not a great start to the year. Further to that, if you leave it another 90 days then you’ll start to accrue a £10 a day penalty on top of the £100 fine. So start early to avoid being cleaned out thanks to late submission!

Don’t be afraid to ask for help

If you want to avoid the flop sweat developing at 11:55pm on 31st January while you curse your lack of book-keeping skills, then it does pay to acquire the help of an accountant. Tax is, by its very nature, a complex beast and any good business person knows how to delegate. If you can keep on top of your records then a recommended accountant should be able to help you when it comes to completing your self-assessment.

There’s plenty to get your teeth into as a freelancer. From chasing clients to drumming up new business and getting your name recognised, there’s always a lot to think about. However, keeping on top of your financial records and making sure you’re fully registered with HMRC is one of the most important things you can do if you want to avoid the pitfalls of a stressed and rushed January.

What methods do you use to avoid the typical January rush to submit your self-assessment return? Are you super organised and early to the self-assessment party or do you take advantage of a good accountant to remove the pressure a bit? Let us know in the comments how you’ll be handling self-assessment stress this year!

The presents are unwrapped, the turkey has been feasted upon and Quality Street wrappers are strewn about the house. The big day is over and so we turn our attention to the impending New Year.

It’s a time for looking back at the year just gone and to determine the changes we want to make for the year ahead. If you’re a contractor then the end of the year is about looking at more than losing a few pounds in weight or getting more organised. It provides an opportunity to look at your business, your goals and the satisfaction and success you get from your career.

As it’s that time of year, we’re having a look at some of the most important New Year resolutions that a contractor can make to take their business to the next level.

Get ready for the self-assessment deadline

It’s the same every year. 31st January comes around and there’s a flurry of activity in the preceding weeks to make sure that your forms are filled in and any tax owed from the previous year is paid in full.

We understand that Christmas is a busy time of year for everyone. However, preparing yourself for January’s self-assessment deadline is one of the greatest pieces of advice we could give to any independent professional. The earlier you gather all of the required information, from earnings and expenses to personal assets and pensions, then the smoother the journey to the deadline. There’s no better way to start the New Year than by being prepared and organised.

Get comfortable with networking

One of the greatest things you can do as a contractor is expanding your business network. It can be a solitary lifestyle, especially if you don’t employ anyone else to help you. Engaging with other professionals in the same field has numerous benefits; it can lead to collaborative projects, potential leads, referrals and access to new resources.

It’s worth leveraging your social media accounts for business purposes; LinkedIn is brilliant for professional networking, while Twitter is perfect for starting conversations with individuals with similar interests. And never forget the importance of face-to-face networking. Find an event for local business people and enhance your professional network.

Find some balance

We’ve written before about the importance of learning to balance your work life and personal life to help avoid the common stress pitfalls. One of the greatest resolutions you’ll ever make, New Year or otherwise, is to redress a work life balance that is, well, out of balance.

Making more time for relaxing, hobbies and quality time with your loved ones will help you to manage your stress levels and will also leave you refreshed and better able to tackle any issues during the working day.

One issue we can resolve for you is access to comprehensive contractor insurance while you’re busy growing your business. Here at Kingsbridge we’ve created a unique contractor insurance policy that contains five key elements of cover, including Public Liability, Professional Indemnity and Employers’ Liability cover.

If you want access to one of the most wide-ranging, single policy contractor insurance packages then apply online now to purchase cover immediately. If you wish to speak with one of our highly trained team to further discuss your requirements then do not hesitate to call us on 01242 362149 where one of our customer advisers will be on hand to help.

Christmas music fills every shop, decorations have been adorning doorways and window displays for many weeks now and gift lists are being ticked off, one by one.

If you’re lucky enough to have an engineer in your life, you may be left wondering exactly what you can buy the curious mind that is likely to have everything. You want to find something that will fire up the imagination, something unique and something useful.

After all, where would we be without the massive contribution to society our engineer friends and family have made? Take a look at our engineer gift guide and find a way to show the engineer in your life some love this Christmas.

1. Try a slogan t-shirt on for size

We think engineers are pretty awesome, so why not let them shout about it with a slogan t-shirt? Some of our favourites include this one from the ubiquitous and ever popular “Keep Calm…” oeuvre. Or how about this “Leftover parts are proof you made it better” t-shirt? That way we’ll always know when there’s an engineer in our midst, ready to take something apart and make it that little bit better?

2. Wrestle with a robotic arm

What could be more exciting to unwrap under the Christmas tree than a Build Your Own Robotic Armkit, available on Amazon. Get your favourite engineer absorbed in this technical task that allows them to build and operate a robotic arm. Featuring a base rotation, elbow and wrist motion and a gripping claw, this is the perfect way to raise a toast to the festive season.

3. Write home about the ultimate geek pen

We’re not ashamed to say that we geeked-out a little bit when we stumbled across this 5-in-1 pen, perfect for any gadget loving engineer. Featuring a UV light, a laser pointer to use in presentations, a flashlight to illuminate writing surfaces, a stylus tip for touchscreens and a regular ballpoint, the Ultimate Geek Pen is the last word in convenience and efficiency!

4. Star-gaze with an at-home planetarium

We’d bet that all brilliant, inquisitive minds have, at one time or another, gazed at the night sky in awe and wonderment at its many secrets. Replicate that effect with this amazing Star Theatre Planetarium. This super realistic planetarium shows real constellations and projects shooting stars at random intervals. Perfect for a cosy night in looking up at the stars, whatever the weather.

5. Step into the future with a printed figurine

Okay, this one is a bit of a stretch, but bear with us because it’s very cool! If you want to combine a European city break with a unique for your loved one, then a trip to Germany could be in the offing! Berlin based company twinkind offer a 3D figurine printing service that allows you to print a mini-me figurine from a 3D scan. Like a portrait from the future, these are the ultimate in cool and kooky gifts!

Is one of your loved ones an engineer? What do you plan on buying them? Are you an engineer yourself? What’s your favourite gift to receive at Christmas? Let us know in the comments below!